- How financially fit is your non-profit organisation?
- Are its financial resources well managed?
- How healthy are your financial control systems?
This checklist will diagnose the health of your organisation's systems of financial management.
Financial Management for Non Profit Organisations
Financial Risk # 7
Preparing budgets for funding applications
Over our many years in the sector, we have witnessed lots of organisations tying themselves in knots while trying to report on funds spent in line with the relevant funding contracts.
This highlights the fact that serious consequences could arise if you submit a budget to a potential funder that has not been carefully thought through and prepared in line with the organisation’s overall resource needs and budget. Such consequences can lead to:
- The organisation getting into a precarious financial position if all the support, core or overhead costs needed to sustain the project are not included in the project budget.
- Failure to meet the full delivery obligations under the funding contract.
- The inefficient use of resources and unnecessary stress on staff.
- A strained relationship with the funder.
There is a risk that organisations prepare budgets for proposals in a manner that reflects their perceptions of what a funder wants, rather than what an organisation truly requires in order to properly implement the planned activities. We therefore set out, below, a few tips that may help you avoid some of the common pitfalls that arise when preparing budgets to support funding proposals:
Click here to read our TOP TIPS FOR PREPARING PROPOSAL BUDGETS
We do hope that these “tips” will help you to prepare budgets to support your funding proposals that not only catch the eye and imagination of the funder, but also give as few problems as possible in monitoring, and reporting on, the financial performance of the project.
With best wishes
Cathy and Paul